Aluminum Still Has Room to Rise on New Reason for Longs to Jump in, SMM Expects

Published: Aug 7, 2017 14:42

Save

Despite fading impact from supply side reform, aluminum prices still have room to rise this week since longs will find new reason to enter, SMM predicts.

SHANGHAI, Aug. 7 (SMM) –Despite fading impact from supply side reform, aluminum prices still have room to rise this week since longs will find new reason to enter, SMM predicts.

SHFE Aluminum Surges as Market Gets Sensationalized by Off-Peak Production Program in Hebei, SMM Reports

Impact on aluminum capacity and captive power plants from environmental factor will encourage investors to raise bullish bets, SMM explained. SHFE 1710 aluminum will trade mainly between 14,550-14,950 yuan/tonne.

SMM Data: China Aluminum Output Jumps in July

The decline in LME aluminum stocks slowed down. Weakening consumption pushed down premiums overseas. Hence, LME aluminum will continue underperforming SHFE aluminum and move between $1,900-1,930/tonne.

In domestic spot market, cargo holders will show low willingness to sell, while downstream demand will be poor in the off-season. Spot discounts should change little at 140-100 yuan/tonne.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

aluminum prices SHFE aluminum prices LME aluminum prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

CME Increases Margin Requirements for Aluminum Futures Contracts to $5,000 Effective April 3

CME raised the margin requirements for some aluminum futures contracts to $5,000, with the new rules taking effect after the close on April 3 local time.

2 hours ago

Shandong Lubei Haisheng Launches Green Aluminum Project, Aiming to Save 128,000 mt of Coal Annually

On March 31, the commissioning and trial production of the Green Technological Transformation Project for Aluminum-Based New Materials of Shandong Lubei Haisheng Biological Co., Ltd. was launched. Since construction began in 2024, the project had completed a cumulative investment of 455 million yuan. After the project is fully put into operation, it will save 128,000 mt of standard coal in comprehensive energy consumption annually, significantly improve the level of comprehensive resource utilization, and further consolidate the foundation for the enterprise's alumina capacity of 1 million mt/year.

2 hours ago

Baotou Launches $500M Rare Earth Aluminum Project, Aiming for 100,000 mt Annual Output

Recently, construction officially began on the high-end rare earth aluminum alloy project in the Baotou Jinshan Economic Development Zone, with a total investment of approximately 500 million yuan and annual output of 100,000 mt. The project will be advanced in an orderly manner in two phases. Phase I will build a 30,000 mt high-end rare earth aluminum alloy production line, focusing on technology R&D and capacity release to rapidly achieve scaled-up production. Phase II will expand capacity by 70,000 mt, further extend, supplement, and strengthen the industrial chain, optimize the product mix, increase added value, and support Guyang in building a distinctive high-end rare earth aluminum alloy industrial cluster.

2 hours ago